File a Claim for Unpaid Superannuation

Your employer is required to make a contribution of a certain percentage to a super fund on your behalf under the Superannuation Guarantee Scheme. However, some employers might underpay or even fail to make this contribution to their employees’ funds.

Unfortunately, not many employees check if the contribution has been made. Some are not even aware of the superannuation contribution. To determine whether or not your employer is rightfully paying you, it is essential to understand unpaid superannuation thoroughly.

We have specialists in the areas of superannuation who can guide you and ensure that you receive the entitled amount you have worked hard for.

What Is Unpaid Superannuation?

Unpaid super is money you have earned working for your employers but have failed to receive. If you work part-time or full-time and earn $450 or more monthly, your employer is required by Australian law to pay a percentage of your income in your superfund after three months.

This superannuation fund amount builds your retirement savings. If the employer hasn’t been making this contribution, you are missing out on thousands of dollars. You must determine whether you are getting the amount you rightfully earn and file a claim otherwise.

The Australian Taxation Office (ATO) will evaluate the case and recover any unpaid superannuation your employer owns, including penalties and interest.

Reasons Behind Missing Superannuation?

All employers are obliged to pay the correct amount to the superannuation fund of all employees by the end of each quarter. Missing or late contributions in the super fund might occur due to several reasons, including:

• Deliberately avoiding the obligation
• Problems in the cash flow resulting in late or missing superannuation
• The Business is failing and trading insolvent
• Lack of proper administration because of inadequate systems, employee growth, or busy periods
• Innocent mistakes

No matter the reason, you are underpaid and not getting the money you are entitled to, and your retirement fund shrinks drastically because your employer isn’t fulfilling their obligation.

Ways to Determine Unpaid Superannuation

To check any unpaid superannuation, start by checking your weekly or monthly payslip or the annual payment summary. A separate section should show the superannuation amount paid by the employer on your behalf.

• Next, multiply your ordinary salary by 0.010 (super percentage 10%). The listed superannuation contribution by your employer on your payslip or summary must be close to the amount you calculated.
• Lastly, find your recent superannuation statements and check the amounts. Do the amounts on the statements match the amount listed on the payment summary or payslip?
• If you are unable to find the details of superannuation on your payslip, your employer must be able to provide them to you upon request.

Tips and strategies if the numbers don’t match.  You must notify the ATO, and You should file a claim.

Steps to File an Unpaid Superannuation Claim

Realising your employer hasn’t been paying you the amount you rightfully deserve can get stressful. However, there are possibilities that this could have been a mistake or error. Therefore, before you get in touch with ATO regarding unpaid superannuation, here are a few steps to follow:

1. Firstly, check your eligibility for receiving the superannuation from your employer. You are only eligible if you are over 18 years of age and earn more than $450 every month (before tax).
2. Secondly, get in touch with your employer to inquire about your unpaid superannuation if you notice any discrepancies. As mentioned earlier, it could be an administrative delay or an innocent mistake. Request your employer to restore the funds. Your employer should notify you once the mistake has been rectified or inform you in case of further delay.
3. If your employer still doesn’t pay the missing amount or refuses to do so, it is time to take some measures. Get in touch with the fund manager and explain your problem by providing the following:

• Employer’s name, address, and contact information
• Australian Business Number (ABN) of the employer
• Your tax file number

4. Often, the fund management company has a dedicated department to resolve these issues, and, in many cases, the issue is resolved once they get in touch with the employer.
5. You must notify the department of unpaid superannuation by calling the ATO on 13 10 20 or reporting the unpaid super online if this doesn’t work.

It can be an overwhelming process for you to identify the unpaid super and file a claim. Therefore, it is best to consult professionals to guide you and help you through the process.

Time Limit to Recover Unpaid Superannuation

Employees can make a claim for unpaid superannuation contributions from the past five years. This is the period during which employers are obliged to keep a record of the contributions and the unpaid superannuation time limit. However, you can still claim unpaid super for more than five years if you have the required documentation.

Can you sue for unpaid super? Yes, and the ATO usually requires you to submit the super fund statements and your payslips for the period you did not receive the contributions. ATO will evaluate your case and start an investigation if they have all the required documentation. It might take more time if you choose to stay anonymous.

Andrew Bell

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Expert Insolvency Advisor

Andrew's clients come to him because they know they are getting the best service possible. With the support of the expert team at the Liquidation Advisory Centre, he has been helping people and company directors make intelligent financial choices and advised on different options to achieve business financial stability for over 30 years.

Get a complimentary first consultation by calling 1300 887 210 to find out about your options and receive expert advice on Business Insolvency and Business Liquidation.